this post was submitted on 30 Sep 2023
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Political Memes

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[–] [email protected] 24 points 1 year ago (28 children)

I wonder, sometimes, what a society would look like without inflation. Is there an economic system that says "this is the price of bread, from now on" and builds off of that?

Of course, my only talents are music and memes, so I doubt that I'd specifically benefit from such a system, but maybe humanity as a whole?

[–] [email protected] 18 points 1 year ago (5 children)

One of the reasons some inflation is 'good' is that it drives investment. People are discouraged from saving their money since it will slowly devalue. Rather, those with capital are incentived to invest it in other areas of the economy.

[–] [email protected] 11 points 1 year ago (4 children)

That would only happen if deflation was a thing too. In my (highly idealistic) world, money would not change value at all, so growth in a business would be real, not just projected numbers on a chart no one understands. In a fixed-econony, you invest into businesses that actually grow.

I know this may come off as controversial, but this sort of thinking will be necessary for interstellar trade, if we don't blow ourselves up first.

[–] Whimsical 3 points 1 year ago (1 children)

Could you elaborate a bit on that? I'm not really sure how a business that "actually grows" would be functional ina fixed economy without becoming confusing graphs or entering some other major problem.

[–] [email protected] -1 points 1 year ago

Like, the business actually gets bigger: opens more stores, creates new products, offers more services. The regulatory system behind this is starting to sound a bit tankie though, so I'm gonna shelve it for more thought.

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